ATR exhaustion
ATR exhaustion means the day has already covered most of its normal range (80% of the daily ATR or more), so the market is out of fuel and a breakout of a level is unlikely that day.
On 14 October 2026 Ethereum reached its 2,405.07 level only after covering 1.5 times its daily ATR; it went 3.70 beyond the level and closed back above. Traders who follow this rule do not plan a breakout once most of the day’s ATR is spent.
Learn more: pillar three, direction, out of fuel and the day’s range already spent.